TMHC Iron Condor Strategy
TMHC (Taylor Morrison Home Corporation), in the Consumer Cyclical sector, (Residential Construction industry), listed on NYSE.
Taylor Morrison Home Corporation, together with its subsidiaries, operates as a public homebuilder in the United States. The company designs, builds, and sells single and multi-family detached and attached homes; and develops lifestyle and master-planned communities. It also develops and constructs multi-use properties consisting of commercial space, retail, and multi-family properties under the Urban Form brand name; and offers title insurance and closing settlement services, as well as financial services. In addition, the company operates under the Taylor Morrison, William Lyon Signature, and Darling Homes brand names in Arizona, California, Colorado, Florida, Georgia, Nevada, North and South Carolina, Oregon, Texas, and Washington. Taylor Morrison Home Corporation was founded in 1936 and is headquartered in Scottsdale, Arizona.
TMHC (Taylor Morrison Home Corporation) trades in the Consumer Cyclical sector, specifically Residential Construction, with a market capitalization of approximately $5.30B, a trailing P/E of 8.11, a beta of 1.51 versus the broader market, a 52-week range of 54.58-72.5, average daily share volume of 1.3M, a public-listing history dating back to 2013, approximately 3K full-time employees. These structural characteristics shape how TMHC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.51 indicates TMHC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 8.11 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a iron condor on TMHC?
An iron condor sells a call spread and a put spread at strikes outside spot, collecting net premium that is kept if the underlying stays inside the inner short strikes.
Current TMHC snapshot
As of May 15, 2026, spot at $55.07, ATM IV 39.20%, IV rank 5.67%, expected move 11.24%. The iron condor on TMHC below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.
Why this iron condor structure on TMHC specifically: TMHC IV at 39.20% is on the cheap side of its 1-year range, which means a premium-selling TMHC iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 11.24% (roughly $6.19 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TMHC expiries trade a higher absolute premium for lower per-day decay. Position sizing on TMHC should anchor to the underlying notional of $55.07 per share and to the trader's directional view on TMHC stock.
TMHC iron condor setup
The TMHC iron condor below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With TMHC near $55.07, the first option leg uses a $57.82 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TMHC chain at a 34-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 TMHC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $57.82 | N/A |
| Buy 1 | Call | $60.58 | N/A |
| Sell 1 | Put | $52.32 | N/A |
| Buy 1 | Put | $49.56 | N/A |
TMHC iron condor risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit.
TMHC iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on TMHC. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
When traders use iron condor on TMHC
Iron condors on TMHC are a delta-neutral premium-collection structure that profits if TMHC stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
TMHC thesis for this iron condor
The market-implied 1-standard-deviation range for TMHC extends from approximately $48.88 on the downside to $61.26 on the upside. A TMHC iron condor is a delta-neutral premium-collection structure that pays off when TMHC stays inside the inner short strikes through expiration; the wing width should reflect the trader's tolerance for the maximum loss scenario where the underlying breaches an outer strike. Current TMHC IV rank near 5.67% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on TMHC at 39.20%. As a Consumer Cyclical name, TMHC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TMHC-specific events.
TMHC iron condor positions are structurally neutral / range-bound; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. TMHC positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TMHC alongside the broader basket even when TMHC-specific fundamentals are unchanged. Short-premium structures like a iron condor on TMHC carry tail risk when realized volatility exceeds the implied move; review historical TMHC earnings reactions and macro stress periods before sizing. Always rebuild the position from current TMHC chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on TMHC?
- A iron condor on TMHC is the iron condor strategy applied to TMHC (stock). The strategy is structurally neutral / range-bound: An iron condor sells a call spread and a put spread at strikes outside spot, collecting net premium that is kept if the underlying stays inside the inner short strikes. With TMHC stock trading near $55.07, the strikes shown on this page are snapped to the nearest listed TMHC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TMHC iron condor max profit and max loss calculated?
- Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit. For the TMHC iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 39.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TMHC iron condor?
- The breakeven for the TMHC iron condor priced on this page is no defined breakeven on the modeled curve at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current TMHC market-implied 1-standard-deviation expected move is approximately 11.24%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a iron condor on TMHC?
- Iron condors on TMHC are a delta-neutral premium-collection structure that profits if TMHC stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current TMHC implied volatility affect this iron condor?
- TMHC ATM IV is at 39.20% with IV rank near 5.67%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.